OEM_Team-1_MountainMan

OEM_Team-1_MountainMan - Mountain Man Brewing Company Team...

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1 OEM Team 1 OEM Team 1 Mountain Man Brewing Mountain Man Brewing Company Company Team 1: Team 1: Rusty McLaughlin Rusty McLaughlin Larry Miller Larry Miller Corrie Musgrave Corrie Musgrave Luke Setzer Luke Setzer
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2 OEM Team 1 OEM Team 1 Analysis of the Introduction of a Analysis of the Introduction of a Light Beer to the Mountain Man Light Beer to the Mountain Man Brewing Company (MMBC) Brewing Company (MMBC)
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3 OEM Team 1 OEM Team 1 Current Beer Market East Central Region % Total 6-year CAGR Light Beer 18,744,303 50.4% 4.00% Premium Beer 7,326,642 19.7% -4.00% Popular 4,351,356 11.7% -5.00% Imported Premium 4,462,929 12.0% 6.00% Superpremium (craft and high-end domestics) 2,305,847 6.2% 9.00% Total Barrels 37,191,077 100.0%
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4 OEM Team 1 OEM Team 1 Beer Preferences by Key Demographics Domestic Light Beer Domestic Premium Beer Mountain Man Lager Gender Male 58% 68% 81% Female 42% 32% 19% Age 21-24 9% 8% 2% 25-34 20% 20% 15% 35-44 24% 23% 19% 45-54 22% 23% 32% 55-64 14% 14% 19% 65+ 12% 12% 13%
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5 OEM Team 1 OEM Team 1 Option 1: Do Not Introduce Light Beer Financial Impacts: No addition to cost structure 2% decrease in sales annually NPV Calculation in Perpetuity (Based on Formula from Finance for an Annuity) Annual Change in MM Beer Revenues -2.0% Discount Rate 12.00% Discount Factor at Year 2010 1.76 Terminal Value (TV) of Contribution from Original MMBC year 2010 on 98,938,470 NPV of Terminal Value of Contribution from Original MMBC year 2010 on 56,140,345 NPV of MM Brewing Company Overall 109,454,800
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6 OEM Team 1 OEM Team 1 Option 1: Do Not Introduce Light Beer Strategies to Improve MM Lager Sales Target Younger Generation Target Women Expand Sales Region Sales Promotions Increase Advertising Update/Refresh current label Social Marketing
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Option 1: Do Not Introduce Light Beer Strengths Low perceived risk of cannibalization Minimal up front capital expenditure Maintain margin contribution Weaknesses Minimal improvement in future financial position Increasing competition for shrinking premium beer market No data to compare cost to benefit of strategies used to improve MM Lager sales
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8 OEM Team 1 OEM Team 1
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This note was uploaded on 05/12/2010 for the course MAR 5805 taught by Professor Sawyer during the Fall '08 term at University of Florida.

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OEM_Team-1_MountainMan - Mountain Man Brewing Company Team...

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